Seeking Alpha

The Part-time Investor

View as an RSS Feed
View The Part-time Investor's Comments BY TICKER:
Latest  |  Highest rated
  • Dividends And 'The Magic Pants' [View article]
    Streak,

    Costco's price rose that day 6% BECAUSE it announced a special dividend. My point is that millions of people buy dividend paying stocks BECAUSE they pay a dividend. I haven't seen where this is factored into Larry's models.
    Mar 19 12:48 PM | 1 Like Like |Link to Comment
  • Dividend Growth Investing: An Introduction To Creating Wealth [View article]
    David,

    Thanks for the article. Looking forward to the rest of the series.
    Mar 19 09:17 AM | 1 Like Like |Link to Comment
  • Dividends And 'The Magic Pants' [View article]
    Wit,

    I remember the day it was announced. The stock rose 6% because of the dividend announcement. It was all over CNBC. You don't want to believe it that's fine. But none of Larry's models explain this price movement.
    Mar 18 07:53 PM | 3 Likes Like |Link to Comment
  • Dividends And 'The Magic Pants' [View article]
    Wit,

    I think you're missing my point. Larry says that his academic articles show that dividends have no bearing on stock returns. And yet here is an example, with Costco, of the simple announcement of a special dividend causing the stock to increase by 6% in a single day. Did the book value go up? No. Did the earnings go up? No. In fact it's debt went up, so according to Larry it should have been worth less, and it's stock price should have fallen. It shows that PEOPLE determine the stock price, not academic papers or models.
    Mar 18 07:37 PM | 4 Likes Like |Link to Comment
  • Dividends And 'The Magic Pants' [View article]
    Bruce,

    Although there are many DGI proponents on SA, I don't think we have the power to move the price of a $50B company. Ahhhhh...to have such power.

    Secondly, at least the way I do DGI, and from those here on SA that I learned from, we don't buy stocks based on special dividends. We buy them based on at least a 5 year history of increasing the dividend, and only if the stock is at, or below fair value. So no, I don't think many of us DGIers here on SA bought Costco that day. I know I didn't.
    Mar 18 07:32 PM | 1 Like Like |Link to Comment
  • Debunking The 'Dividends Don't Add Shareholder Value' Myth [View article]
    Great Article Chuck. Thank you.
    Mar 18 07:25 PM | Likes Like |Link to Comment
  • Dividends And 'The Magic Pants' [View article]
    Wit,

    As far as I can tell the ANNOUNCEMENT (not the ex-div date) was made on Nov. 28th, 2012. On that day the stock jumped 6%, simply based on the announcement of the special dividend. It closed at $96.51 on 11/27/12 and closed at $102.58 on 11/28/12 (as per Yahoo.com)
    Mar 18 07:07 PM | 1 Like Like |Link to Comment
  • Dividends And 'The Magic Pants' [View article]
    Larry,

    Maybe I don't understand what you mean, but please explain to me how something (dividends) which has been used successfully as a basis for investing for decades is an "anomaly"??
    Mar 18 06:53 PM | 1 Like Like |Link to Comment
  • Dividends And 'The Magic Pants' [View article]
    Larry,

    In November of 2012 Costco announced that they were borrowing 3.5 billion dollars to pay a one time special dividend. They were taking on more debt, just to pay a dividend. By your reasoning the stock should have dropped in price significantly because A) It now had more of a debt burden and B) It had less cash because it paid the large special dividend. In fact, the stock price jumped about 6% on the news. So the market, obviously, doesn't agree with your academic studies. And it is the market that prices stocks. Not Fama-French four factor models.
    Mar 18 04:15 PM | 7 Likes Like |Link to Comment
  • How You Can Invest Like Warren Buffett [View article]
    David,

    ...Stops them for speeding.....AND??? Don't leave us hanging!
    Mar 17 07:00 AM | 2 Likes Like |Link to Comment
  • The Champions, Contenders And Challengers List: A 6-Year Review [View article]
    Wenzac,

    I would be happy to provide my spreadsheet to anybody who would like to look at it. I just hope it is organized in a way that is understandable to others.

    Anybody who wants it can send me a message with their email and I will send the file to you.
    Mar 7 10:19 PM | 1 Like Like |Link to Comment
  • The Champions, Contenders And Challengers List: A 6-Year Review [View article]
    David,

    I didn't realize my work was so important in establishing a statistical basis for DGI. I'm quite impressed with myself! LOL
    Mar 7 10:17 PM | 2 Likes Like |Link to Comment
  • The Champions, Contenders And Challengers List: A 6-Year Review [View article]
    Marty,

    I will work on your suggestion.
    Mar 7 10:13 PM | Likes Like |Link to Comment
  • The Champions, Contenders And Challengers List: A 6-Year Review [View article]
    Multiple Linear regression??? Who do you think I am, Einstein???? LOL
    Mar 7 10:05 PM | Likes Like |Link to Comment
  • The Champions, Contenders And Challengers List: A 6-Year Review [View article]
    David,

    Thanks for your comment.

    "Many DG investors have observed what they call the "sweet spot," usually in the 3%-5% range, give or take." That may explain why the results for YIELD seem to be best in the middle. I'll try to do what you suggested and separate the results for yield into different yield ranges, rather than deciles. It might help to determine which yields give the best results.

    Stay tuned
    Mar 7 10:04 PM | 1 Like Like |Link to Comment
COMMENTS STATS
1,411 Comments
988 Likes